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By Edward Gordon

The Global
Talent Crisis
Contrary to popular opinion, there are plenty
of open jobs. What’s missing are candidates
with skills.

ANGEL HERRERO DE FRUTOS / ISTOCKPHOTO

We are in the midst of a global job discouraged to even look for work or struments. The tech-based U.S. econ-
and talent upheaval, the most re- file for unemployment, and the num- omy failed to invest enough long-
markable of any job and talent ber of people working part time who term resources to educate the
change since the Industrial Revolu- wish to work full time, that figure nation’s youth, preparing them to
tion and encompassing every aspect now approaches 15%. Some 9 million work in the next wave of emerging
of the global economy. people in the United States only have science, technology, engineering, or
The dawning of a new industrial part-time work, up 83% from a year mathematically based (STEM) jobs.
age, a period characterized by a ago. Part-time workers account for While much attention has been fo-
growing need for highly skilled tech- almost 20% of the workforce. That cused on how many millions of low-
nical workers, is driving this revolu- number, too, will likely go up by skill U.S. jobs have been outsourced,
tion. From now through the next next year. There will be jobs in 2010, little notice has been paid to how
dec­ade and beyond, this need will but highly skilled and educated many millions of high-pay, high-skill
grow at an unrelenting pace. This workers will have an easier time in a tech jobs have been outsourced to
new age will require the reinvention highly competitive environment. Europe, Japan, Singapore, or other
of the education-to-employment sys- This is a familiar refrain; we’ve countries with well-educated labor
tem. Simply put, we need to prepare been hearing alarms about the skills pools. Meanwhile, U.S. businesses
more people for jobs that are now be- gap for years. But if ever there was a are importing STEM talent from
ing created by an ultra-high-tech time to get serious about helping abroad using H-1B visas to keep the
economy. In the United States alone, workers acquire the right skills, this nation’s tech-based economy operat-
this high-tech age could spur the is it. ing.
economy to a GDP of $20 trillion per The United States has outsourced
year by 2019 (Congressional Budget advanced technological production,
Clearing the Decks: What Today’s
Office estimate), compared with a design, and management capacity.
Downturn Means for Tomorrow’s
little over $14 trillion now. But prog- Also, many U.S. industries have be-
Job Market
ress is not guaranteed, and the boun- come over-reliant on H-1B “specialty
ties of success will not be evenly dis- Over the last 10 years, the real U.S. occupation” visas to import workers
tributed. economy did grow. Unfortunately, from overseas. However, over the
In the United States, the official too much of the wealth created was next decade, U.S. companies will
unemployment rate is projected to based on short-term financial specu- have trouble building new high-tech
top out at near 10.5% by 2010. Fac- lation all around the globe and the factories in high-skill counties like
toring in the number of people too manipulation of exotic financial in- South Korea, Japan, or Germany, be-

34 THE FUTURIST September-October 2009 www.wfs.org


cause their workforces will have be- 5.6%, 3 million jobs remained vacant need for talent grows, even China’s
gun shrinking. In fact, many coun- (i.e., jobs advertised for six months and India’s educational systems will
tries will probably bring more or more that remain unfilled). The not be able to produce enough quali-
production into the United States if vast majority of vacant jobs are fied graduates for themselves, let
they can locate communities that STEM related. They require a good alone act as safety valves for the rest
have developed appropriate high- high-school education, plus special- of the world. But the heart of this
tech workforces. ized postsecondary career education, issue is the seldom understood fact
At the same time, U.S. firms will two-year or four-year college de- that the education-to-employment
still seek to use H-1B visas to bring grees, one- or two-year college occu- system worldwide is badly out of
engineers, technicians, and other pational certificates, or a two- to date. The United States and most
professionals from China and India three-year appren- other nations are
into the United States. Multiple stud- ticeship education. not producing
ies have shown that China graduates By May 2009, “The picture of the enough graduates
about 600,000 engineers each year, U.S. unemploy- with the kinds of
but only 60,000 are educated at ment had jumped U.S. economy that technical, commu-
world standards. India graduates to 9.4%. However, nications, and
400,000 new engineers each year, but with more than 14 emerges is of abun- thinking skills
only 100,000 are educated at world million unem- needed in the
standards. The quality of educational ployed, more than dance and poverty: twenty-first-cen-
institutions in India and China vary 3 million jobs tury workplace.
greatly, as they have not yet estab- were still vacant, abundance of labor, Without drastic
lished the standards comparable to according to Man- talent creation
the United States for college/univer- power. An analy- poverty of talent, changes between
sity accreditation. As the Chinese sis of unemploy- 2010 and 2020, the
and Indian economies move up the ment by education and economic pain United States will
high-tech value chain, they will have levels helps show experience a major
increasing difficulty supplying their why. The unem- everywhere.” talent meltdown,
own talent needs. Hundreds of thou- ployment rate for with 12 to 24 mil-
sands of foreign nationals are return- high-school dropouts was 15%, con- lion vacant jobs stretching across the
ing home from the United States and trasted to 10% for high-school gradu- entire U.S. economy. Businesses will
elsewhere. They are starting new ates, 7.7% for those with some col- leave the United States searching for
tech-based businesses or taking ad- lege, and 4.8% for those with a scarce talent wherever they can find
vantage of rampant wage inflation bachelor’s degree or higher. it. The U.S. economy will stagnate or
driven by skilled worker shortages Manpower’s 2009 Talent Shortage shrink. For example, in the late 1990s,
across China and India. Survey also reported that 30% of the AMD (Advanced Micro Devices)
These trends mean that U.S., Euro- world’s employers are still facing a wanted to build a new high-tech
pean, and Japanese firms will have talent showdown. Tig Gillion, chief plant. They looked at locations in
increasing difficulty importing executive at Adecco, another staffing California and Texas, but company
enough talent over the next decade. company, agreed that many business officials felt that the communities
In the United States, business will sectors were still hiring new people they investigated could not produce
lobby the government to increase the to fill STEM jobs. A Fortune magazine enough qualified entry-level techni-
availability of H-1B visas. There sim- report highlighted firms that had cians for their needs. The company
ply will not be enough people to fill openings for specific positions, in- went to Germany, built a plant near
all the high-skill/high-wage jobs that cluding Boeing, Google, Genentech, Dresden in 1999, and added a second
are going to be vacant around the Cisco Systems, Ernst & Young, Booz in 2004. Germany was a good fit for
world. Allen Hamilton, KPMG, PriceWater- AMD because of the high technical
Meanwhile, U.S. society has houseCoopers, and many U.S. hospi- standards of Germany’s dual educa-
pushed many of its best and bright- tals. tion system.
est students and mature workers into The picture of the U.S. economy
finance-related jobs that fed a mas- that emerges is of abundance and
What Do the Labor Shortages
sive short-term speculative bubble. poverty: abundance of labor, poverty
Look Like?
Many other Americans have ended of talent, and economic pain every-
up in low-pay/low-skill service jobs After the current recession ends, where. To prevent a chronic job im-
because thousands of American there will be a growing job crisis balance and a true economic catas-
schools are of substandard quality. around the world due to these talent trophe, the United States needs to
shortages. Demographic trends in reinvent its talent-creation system.
the United States, Europe, Russia,
In Search of Technical Talent
and Japan show a drastic reduction
The Three Forces Driving the
Today’s U.S. employment picture in the pool of new highly skilled
Talent Shortage
is extremely muddled. In early 2008, workers, due to low birthrates and
when U.S. unemployment was at massive retirements. As the global There are three socioeconomic

THE FUTURIST September-October 2009 www.wfs.org 35


Green Jobs Under Your Nose
The jobs of the future are here today; you may even be qualified.
Biochemists and Biophysicists Construction and Building Inspectors
What they do: Research the chemical compositions and What they do: Inspect buildings and structures for
physiological processes of living cells and organisms. soundness and compliance with municipal and federal
Education: PhD in biochemistry or biophysics. A mas- regulations.
ter’s degree will qualify an applicant for some applied- Education: High-school diploma, plus experience in a
research, management, and community-college instruc- skilled-trade profession.
tor positions. MATT GOINS / LEXINGTON HERALD LEADER / MCT / NEWSCOM
Salary: $36,610 to $58,780
Salary: $53,390 to $100,060 Job outlook to 2016: Heightened
Job outlook to 2016: Growth will be concerns over public safety and grow-
average, from 20,131 jobs in 2006 to ing interest in sustainable design will
23,326 in 2016. Increases in federal generate impressive growth in this
spending on research have slowed field, from 109,730 jobs in 2006 to
considerably and will probably remain 129,739 jobs in 2016. More than 48% of
slow for the near future. new jobs will be with state and local
Learn more: Society of Environmen- governments.
tal Toxicology and Chemistry, www Learn more: American Society of
.setac.org. Home Inspectors, www.ashi.org.
American Society for Biochemistry International Code Council, www
and Molecular Biology, www.asbmb .iccsafe.org.
.org.
Environmental Engineering and
Chemical Engineer Pollution-Control Technician
What they do: Develop plant equip- What they do: Modify, test, and oper-
ment and processes for manufacturing ate pollution-control systems and devices.
chemicals and consumer products. Education: Associate’s degree,
Education: Bachelor ’s degree or Green Jobs. University of Kentucky though some positions do not require
master’s degree in chemical engineer- biological engineer Czar Crofcheck is any formal training.
ing. researching how to maximize the Salary: $30,920 to $53,250
Salary: $62,410 to $98,100 power potential of algae to replace Job outlook to 2016: The United
Job outlook to 2016: In the United gasoline in cars. A green job could States expects fast job growth in this
include anything from enhancing the
States alone, chemical-engineering jobs market, from 21,126 jobs in 2006 to
energy-efficiency of existing systems,
will increase from 30,444 in 2006 to such as home air-conditioning and 26,362 in 2016. Corporations will need
32,842 in 2016. The most growth will heating systems, to discovering the their expertise to comply with tighter
be in service-providing industries, power sources of the future. federal regulations on hazardous waste
such as professional, scientific, and and pollution. Population growth in
technical services. Energy research, major urban areas will further spur de-
biotechnology, and nanotechnology will be particularly mand for better waste management.
active growth fields. Learn more: Association of Environmental Profession-
Learn more: The American Institute of Chemical Engi- als, www.califaep.org.
neers, www.aiche.org Green Engineering Jobs, www.greenengineeringjobs
Green Chemistry Institute, www.chemistry.org. .com.

forces driving us to a talent show- ucational preparation needed for sci- Asia. Replacement-level fertility (on
down: demographic declines in entific or technical employment. a national level) is generally consid-
many industrialized nations, a skills • Global demographics. Through- ered 2.33 children per female, but
gap because students and incumbent out the industrialized world, birth- can be higher in countries with a sig-
workers are not receiving the educa- rates are very low and the propor- nificant infant-mortality rate. The
tion and training needed for high- tion of baby boomers retiring is very CIA World Factbook estimates Ger-
tech employment, and a cultural bias high. This is a particularly important many’s fertility rate now to be 1.4;
against undertaking the rigorous ed- issue in western Europe and parts of ­Italy’s, 1.31; Russia’s, 1.41; Japan’s

36 THE FUTURIST September-October 2009 www.wfs.org


Green Entrepreneurs and Consultants Landscape Architect
What they do: Green entrepreneurs run businesses that What they do: Plan and design land areas such as
provide green products and services. Green consultants parks, airports, highways, hospitals, schools, land subdi-
provide their expertise and consulting services to paying visions, and industrial sites.
clients. Education: Degree (bachelor’s or master’s) in land-
Education: It varies. Most have extensive practical ex- scape architecture.
perience and an extensive skill set that they developed Salary: $42,720-$73,240
through formal education or training — such as a “green Job outlook to 2016: Learn more: As construction proj-
MBA,” which increasing numbers of private and public ects and land conservation efforts both pick up pace, so
universities are now offering. will hiring for landscape architects — from 27,389 jobs in
Salary: Some earn a minimal salary, while others earn 2006 to 32,402 in 2016. They will find many work oppor-
well over $100,000 a year. tunities in restoring wetlands and endangered sites, re-
Job outlook to 2016: This is a diverse field, and esti- claiming land, preserving historic sites, and managing
mates vary widely on how many jobs it will hold. But all storm runoff caused by urban development.
indicators are that they will be numerous. Michael Rich- Learn more: Association of Professional Landscape
mond, director of the Green Clean Institute, says that Designers, www.apld.com.
green consultant and entrepreneur is “likely the business Council of Landscape Architectural Registration
career of the decade.” Boards, www.clarb.org.
Learn more: GreenBiz, www.greenbiz.com.
Sustainable Business magazine, www.edie.net/
Refuse and Recyclable Material Collectors
magazines.
What they do: Collect, and dispose of, communities’
refuse and recyclable scrap materials.
Hydrologist
Education: Some employers require a high-school di-
What they do: Study the circulation, distribution, and ploma.
any pollution problems of natural precipitation and bod- Salary: $21,550 to $38,490
ies of water. Job outlook to 2016: The occupation will likely see av-
Education: A degree (bachelor’s or master’s) in a natu- erage growth, from 135,970 jobs in 2006 to 146,047 in
ral science. High-level research positions often require a 2016. Many job vacancies will be the result of workers
doctorate. switching jobs or retiring.
Salary: $51,370 to $82,140 Learn more: National Recycling Coalition, www.nrc-
Job outlook to 2016: Growth will be above average, recycle.org
from 8,314 jobs in 2006 to 10,377 in 2016, due to increased Recycler’s World, www.recycle.net.
strains on natural ecosystems from human population
growth. Hydrologists will be in demand for their abilities Source: Green Careers: Choosing Work for a Sustainable Future by Jim
to determine the effects and concentrations of pollutants Cassio and ­Alice Rush. New Society Publishers. 2009.
in soil and ground water. Private-sector consulting firms
will be the most active employers.
Learn more: American Institute of Hydrology, www
.aihydro.org.
Water Environment Federation, www.wef.org.

and South Korea’s, 1.21. This means Y don’t have the same ethos regard- delay retirement due to declines in
that the working-age populations in ing work as their parents did. The investments and pensions. Genera-
these countries will shrink and have baby boomers seemed to live to work tion X in particular is more interested
to support higher and higher num- and shop. They put up with long in obtaining a good work-life bal-
bers of retirees. hours in exchange for big salaries. ance. Women are graduating from
Shifts in generational values are That’s changing. Many boomers are institutions of higher learning at
magnifying the impact of demo- looking to work less hard as they higher rates than are men, and many
graphic declines. Generations X and age, although many may be forced to want time off to raise children. They

THE FUTURIST September-October 2009 www.wfs.org 37


want to work at home, flex hours, against gaining the education and ment. As a result, between 2010 and
sabbaticals, and job sharing, but they training required for science and 2020, some technology-based indus-
also want pay parity with men. technology jobs, but not against tech- tries will be seeking to replace 100%
Many companies are having trouble nology itself. of their workforces. Overall, 66% of
dealing with those issues. What’s truly amazing is the num- the jobs to be filled during the next
• The skills gap. Since the original ber of people who love technol- decade will be vacancies created by
publication of A Nation at Risk in ogy — iPods, iPhones, laptops, Twit- boomer retirements.
1982, reports continue to be issued ter, podcasts — but due to cultural Advancing technologies are trans-
about serious deficiencies in Ameri- reasons, they don’t acquire the train- forming the nature of occupations.
can education. In this age when some ing to design, repair, or manage the All the skilled trades and many in-
form of postsecondary education is a technology. This is now true even in stallation and repair positions now
requirement for all but low-wage, Japan, where they call this phenome- require the use of advanced technol-
low-skill jobs, the overall U.S. high- non “the flight from science.” Even ogies that continue to evolve at a
school dropout rate continues to the tech-driven German economy in rapid pace.
hover around 30%. Even more alarm- 2008 was experiencing a shortage of The number of new technologies
ing, the average high school gradua- 75,000 engineers to fill vacant posi- introduced over the next decade will
tion rate in the 50 largest U.S. cities tions. likely be equal to those invented
was 52.8%. In a 2005 survey, 60% of The baby boomers’ formative years over the last 50 years. Yet the current
American manufacturers reported were marked by the Cold War arms breakdown in the global talent-­
that even those high-school students race and by the space race. The Na- creation systems does not bode well
who did graduate were poorly pre- tional Defense Act funded a variety for the future.
pared for entry-level jobs. of math and science programs in ele-
According to a 2008 Alliance for mentary and high schools as well as
Rebuilding the Talent Pipeline
Excellence in Education report, only higher education career programs.
half of the 1.4 million twelfth graders This, in turn, supported a major ex- If between 2010 and 2020 the U.S.
who took the ACT tests were ready pansion of science and technology education-to-employment system re-
for college-level reading. Some 42% across the entire U.S. economy. mains unchanged, the United States
of public community college fresh- NASA put men on the moon in 1969 will see increasing numbers of
men and 20% of freshmen in public and during the early 1970s; the So- people, even degreed individuals,
four-year institutions need to take re- viet Union collapsed in 1991. These with poor job prospects.
medial courses in basic skills such as events brought an end to much of Can this gloomy scenario be
reading, writing, and math. More- the U.S. government emphasis on avoided? Businesses, educators, and
over, only 25% of Americans who be- technological expansion. The next unions will all have to play a far
gin postsecondary education ulti- generation received far less encour- more active role in expanding the
mately obtain a full college degree. agement to consider these STEM proportion of highly skilled Ameri-
This is the lowest “survival rate” in ­careers. cans to fill this widening STEM tal-
any of the major developed coun- Starting in 2010, 79 million baby ent shortfall, and attract new busi-
tries. boomers (born between 1946 and nesses into every American
• A cultural bias. A bias exists 1964) will begin the shift to retire- community. The problem demands
much broader investment by large
and smaller businesses through up-
Measuring the Gap dated career education systems
formed in partnership with other
Current data show that 62% of all U.S. jobs are high-pay and re- community leaders.
quire higher skill levels. Ninety-seven million people are needed, At the national level, the U.S. Con-
yet only 45 million Americans will be qualified for such positions. gress can encourage these commu-
Businesses plan to make up the difference by using the failing tal- nity investments by allowing busi-
ent safety valves of outsourcing and H-1B visas to import skilled nesses to depreciate investments in
workers. At the other side of the spectrum, 38% of 2010 jobs will training and education, just as they
be low-pay/low-skill requiring 61 million American workers, but now depreciate investments in plants
over 100 million workers will be candidates for such jobs. and equipment. This will encourage
By 2020 the labor market will be clearly out of balance. Indica- a significant increase in employee
tions are that 74% of all jobs will be high-pay/high-skill, with 123 training, particularly for entry-level
million people needed, but only 50 million Americans are expected jobs. Businesses will also have an in-
to be qualified for them. On the other hand, low-pay/low-skill centive to invest in career informa-
jobs are forecast to shrink to only 26% of total U.S. jobs. Only 44 tion and education programs in com-
million people will be needed, but if current trends continue, more munity elementary, secondary, and
than 150 million Americans could fall into this category of low job- postsecondary institutions to rebuild
skill readiness. — Edward Gordon the shattered education-to-employ-
ment pipeline. Currently, U.S. busi-
nesses invest around $53 billion an-

38 THE FUTURIST September-October 2009 www.wfs.org


nually in training and education. By Alexandra Levit
This could grow to $100 billion if
such initiatives prove successful. The Future World of Work: A Gen Xer’s Perspective
Across America, numerous com-
munity-based organizations (CBOs) Wall Street Journal columnist Alexandra Levit parses today’s and
and nongovernmental organizations tomorrow’s job market for new grads.
(NGOs) have been at work for more
than a decade expanding business– For those of us who are members of generations X (born between 1961 and
education partnerships. They have 1980) and Y (1980 – early 1990s), the future I always dreamed about is coming
mobilized the broad participation of up fast. Our careers are relatively young, and for those still in college, they
chambers of commerce, unions, par- haven’t even begun yet. But already, technology is changing so quickly that we
ent organizations, workforce boards, can easily imagine future work lives that barely re­semble the ones we lead to-
economic-development organiza- day. As our baby-boomer parents age, we will become the leaders in an in-
tions, professional and trade associa- creasingly complex world.
tions, and other community groups. If we want to create thriving, sustainable careers that will easily withstand
In Santa Ana, California; Fargo, the turbulence of the next few decades, we must anticipate the qualities of
North Dakota; Danville, Illinois; the future work world. Here are a few ideas based on my own experiences
Mansfield, Ohio; and in many other and my conversations with other workplace experts.
communities, these local CBOs and • Who we’ll be working with: In the coming decades, the baby boomers
NGOs are now making significant will start retiring from their management positions in droves. We will have
local investments to reinvent the to contend with the “brain drain” from those who leave the workforce,
­l ocal and regional education-to-­ boomers who remain employed underneath us for money or personal fulfill-
employment systems. They have ment, and a large influx of immigrants.
helped businesses stay competitive • Who we’ll be working for: In the last decade, as American companies
through worker retraining and ele- have laid off millions of workers, the ideals of job security and employee loy-
mentary/secondary/postsecondary alty no longer apply. In the knowledge-driven economy of the future, large or-
career-education programs. These ganizations won’t be needed to create value, and our livelihood won’t be con-
CBOs and NGOs are rebuilding tal- nected to a single corporation. We’ll work for much smaller organizations that
ent pipelines and helping to attract outsource everything but the business’s core area of expertise, and more than
new businesses offering higher- half of us will eventually become contingent workers, employed part time or
wage, higher-skilled jobs for their as freelancers or consultants.
communities. • Where we’ll be working: We’ve already seen the model of everyone at the
The long-term goal of these CBOs same place, at the same time, begin to disappear. Now that we can be con-
and NGOs is very simple. They seek nected regardless of our physical location, work activities will be distributed
to change the education and training across central offices, remote locations, and community locations. The typical
systems in their own communities eight-hour workday will be spread across a 14-plus-hour window to allow us
and then the mandates in their states to attend to needs at home and work with colleagues abroad.
so that all elementary, high school, • How we’ll be working: Our future workplace will be one of constant
and postsecondary schools will be change, innovation, and skill upgrading. Work projects will begin with one
able to offer the educational and set of goals, but will re­invent themselves over and over again, so we’ll be
training programs that realistically forced to think on the fly. Workers at all levels of the organization will be re-
support a knowledge economy. sponsible for devising creative strategies, and cross-functional teams will be
The global talent showdown will assigned for individual projects.
affect entire economies, and it will be • What we’ll be working on: Future employers will rely on individuals who
felt by everyone. We must all be part are willing to work flexible hours and can leverage the latest technologies as-
of the solution. ❑ sociated with an Internet-oriented, nonstop marketplace. Technical skills will
only increase in importance, and as organizations continue to flatten, people in
all areas of the business will be responsible for administrative skills like bud-
About the Author geting, hiring, and operations. From Generations X and Y, the organizations’
Edward E. Gordon is the leaders will expect individuals who understand human behavior, can engen-
president of Imperial Con- der cooperation, and can bring out the best in w ­ orkers.
sulting, author of Winning Sounds like an exciting time, doesn’t it? I think I’m going to look forward to
the Global Talent Show- “going to work” in 2025. ❑
down: How Businesses and
Communities Can Partner to
About the Author
Rebuild the Jobs Pipeline,
Alexandra Levit is a Wall Street Journal columnist and the author of
and a WorldFuture 2009 speaker. Address:
Success for Hire (ASTD Press, 2008) and the forthcoming New Job,
Imperial Consulting Corporation, 220 East
New You (Random House, 2010). She speaks to organizations
Walton Place, Suite 8E, Chicago, Illinois
around the globe about generational workplace issues. Web site
60611. Web site www.imperialcorp.com.
www.alexandralevit.com.
To read an interview with Edward ­Gordon,
go to www.wfs.org/futurist.htm.

THE FUTURIST September-October 2009 www.wfs.org 39

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